Let’s admit it! Unless it’s how we can increase our bottom line directly, keeping up with the financial aspect of our business seems like a no brainer, but it’s often such a huge problem for most brand owners.
It’s not that it’s forgettable, It’s just that we are constantly focused on making the money from our brand but not keeping up and tracking it all the way to our tax advisors on a daily, weekly or monthly basis.
Here’s the good news, It’s not too late to fix it! Here are 3 mistakes that you’re probably making with your brand finances and how you can fix it!
You’re not separating your business and personal accounts!
This is a massive problem and could be a colossal headache for your finance department or tax advisor. Many brand owners that I’ve personally worked with didn’t even know the pros and cons of having separate accounts! This is by far, the quickest way to lose money. As entrepreneurs, losing money is never a good thing to do!
For your business sake and tax purposes, you should keep both separated! Having a business tied into your personal accounts opens up the chances of being audited by the IRS and that will cost you a lot more than the separated accounts would!
All of your business expenses should come from your business accounts and all of your personal finances should stay separate! It sounds simple but it’s one of the biggest problems for entrepreneurs! If this is you, stop to and fix it now!
You’re not keeping up with expenses
Talking about losing money! This is the quickest way to throw your hard earned brand’s money in the trash! Stop losing those gas receipts, that mileage log that you never update, those trips to your local staples, or your office depot trip to buy those supplies and even that receipt where you bought that new Gold Macbook Air.
There are many incentive or tax breaks for brands that spends money on those business expenses.
Choosing the wrong business structures!
Choosing the wrong business structure can and will hurt your business in the long run. Why run your business as a sole proprietor when you have so many open liabilities waiting to happen against you! The correct structure would be a LLC! What about if you have a partner and you want to do things right with your company’s structure? Then the correct thing to do would be a LLP. Don’t forget about Nonprofits and S corps and C corps
Need help choosing the right structure? Click here
When you’re an entrepreneur, it is always ideal to earn and retain as much money as possible! You would perform your best services, or give your best products for free, Would you? Well, You should take are of these things and be sure not to lose money with these 3 common finances mistakes!